(Solved by Humans)-Problem 16-1 (LO 4) Various funds and account groups. Select the best response for each of the...

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Problem 16-1 (LO 4) Various funds and account groups. Select the best response for each of the following multiple-choice questions. (Numbers 1-8 are AICPA adapted.) 1.     In 20X9, a state government collected income taxes of $8,000,000 for the benefit of one of its cities that imposes an income tax on its residents. The state periodically remitted these collections to the city. The state should account for the $8,000,000 in the a.     general fund. b.     agency funds. c.    internal service funds. d.     special assessment funds. 2.     Kew City received a $15,000,000 federal grant to finance the construction of a center for rehabilitation of drug addicts. The proceeds of this grant should be accounted for in the a.     special revenue funds. b.     general fund. c.    capital projects funds. d.     trust funds. 3.     Lisa County issued $5,000,000 of general obligation bonds at 101 to finance a capital proj- ect. The $50,000 premium was to be used for payment of interest. The transactions involv- ing the premium should be accounted for in the a.     capital projects funds, debt service funds, and the general long-term debt account group. b.     capital projects funds and debt service funds only. c.    debt service funds and the general long-term debt account group only. d.     debt service funds only. 4.     Maple Township issued the following bonds during the year ended June 30, 20X9:   Bonds issued for the Garbage Collection Enterprise Fund that will service the debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             $500,000 Revenue bonds to be repaid from admission fees collected by the Township Zoo Enterprise Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                350,000   What amount of these bonds should be accounted for in Maple’s general long-term debt account group? a.     $0 b. $350,000 c. $500,000 d.  $850,000 5.     During 20X9, Spruce City reported the following receipts from self-sustaining activities paid for by users of the services rendered:   Operation of water supply plant . . . . . . . . . . . . .                     $5,000,000 Operation of bus system . . . . . . . . . . . . . . . . . . .                                                            900,000     What amount should be accounted for in Spruce’s enterprise funds? a.  $0 b.  $900,000 c. $5,000,000 d.  $5,900,000 6.    Through an internal service fund, Wood County operates a centralized data-processing center to provide services to Wood’s other governmental units. In 20X9, this internal service fund billed Wood’s Parks and Recreation Fund $75,000 for data-processing services. What account should Wood’s internal service fund credit to record this $75,000 billing to the Parks and Recreation Fund? a.     Operating Revenues b.     Interfund Exchanges c.     Intergovernmental Transfers d.     Data-Processing Department Expenses 7.    On December 31, 20X9, Elm Village paid a contractor $4,500,000 for the total cost of a new Village Hall built in 20X9 on Elm-owned land. Financing for the capital project was provided by a $3,000,000 general obligation bond issue sold at face amount on December 31, 20X9, with the remaining $1,500,000 transferred from the general fund. What account and amount should be reported in Elm’s 20X9 fund financial statements for the general fund?   a. Other Financing Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                          $4,500,000 b. Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                               $4,500,000 c. Other Financing Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                          $3,000,000 d. Other Financing Uses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                            $1,500,000   8.    The following information pertains to Pine City’s special revenue fund in 20X9:   Appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,500,000 Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 Other financing sources . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 Other financing uses . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000,000 After Pine’s general fund accounts were closed at the end of 20X9, the fund balance increased by a. $3,000,000. b.  $2,500,000. c. $1,500,000. d.  $1,000,000.